The world is, simply, Planet Coca-Cola

Published Sep 18, 2010

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IBM, Microsoft and Google lead Interbrand's 11th annual ranking of the "Best Global Brands". Google (in 4th) sees a 36 percent increase in value over last year, bringing the brand closer than ever to rival Microsoft (3rd).

HP (10th) enters the top 10 for the first time, having increased brand value under a new business model and brand platform.

For the 11th successive year, Coca-Cola retains its spot as the number one brand on the list.

Interbrand, the leading brand consultancy, publishes the ranking of the top 100 brands based on a unique methodology analysing |the many ways a brand touches |and benefits an organisation, from attracting top talent to delivering |on customer expectation.

Three key aspects contribute to |a brand's value: the financial performance of the branded products or services; the role of brand in the purchase decision process; and the strength of the brand in continuing to secure earnings for the company.

A number of prominent brands faced extraordinary crises this year, resulting in stalled growth, value loss and, in the case of BP, failure |to make the ranking this year.

BP's environmental disaster and inability to make good on its brand promise of "Beyond Petroleum" led to it falling off the list and helped competitor Shell emerge as an industry leader, now ranked number 81, up from 92 last year.

Although the Toyota (11th) recall caused the brand to lose 16 percent of its brand value, its long-standing reputation for reliability, efficiency and innovation helped it weather the crisis better than expected.

Goldman Sachs (37th) was once the envy of Wall Street, but now faces the dichotomy of strong economic results and an angry public that will continue to lash out until it begins to demonstrate that it is making sincere efforts to better align its ethics with its brand.

Technology brands continue to lead the pack, with IBM (2nd), Microsoft (3rd), Google, Intel (7th), and HP earning top rankings. |Apple (17th) increased brand value 37 percent through carefully controlled messaging and an endless wave of buzz surrounding new product launches.

Despite a challenging year, HP made smart additions to its product portfolio and swiftly expanded the HP brand to protect its ranking on the list.

With 32 percent brand value growth, BlackBerry (54th) remains the most popular smartphone for business users, despite pressure from Apple as it edges into the corporate world.

"2010 was the beginning of a long road back to economic recovery," says Jez Frampton, group chief executive at Interbrand.

"From real-time customer feedback through social media to increased transparency about corporate citizenship, brands were faced with a profound change in the way they relate to customers and demonstrate their relevance and value," he says. "Despite this new paradigm of brand management, the advantages of building a solid brand remain the same."

During a difficult year for the auto industry, Mercedes Benz (12th) and BMW (15th) were able to sustain and build their value through innovative design and a focus on delivering premium value vehicles with luxury features.

Using customer feedback, largely from YouTube, Twitter and Facebook, to launch the 2009 Fiesta, Ford (50th) stands out as one of the best examples of how to use social media.

Award-winning products like the Q5 and its rich heritage helped |Audi (63rd) lead industry growth with a 9 percent increase in brand value.

Despite the economic downturn, luxury brands Cartier (77th), Armani (95th), Louis Vuitton (16th), Gucci (44th), Tiffany & Co (76th) and Hermes (69th) all saw the value of their brands increase by continuing to invest in their heritage and legendary status. Outstanding customer service and a focus on unique in-store and online experiences allowed them to stay strong, even while consumers cut back spending.

"For much of the emerging world, gaining a place in the top 100 remains a dream," says Jeremy Sampson, executive chairman of Interbrand Sampson, the Joburg-based Africa arm of Interbrand.

According to the International Monetary Fund, emerging markets now represent about a third of the world's gross domestic product and are growing much faster than mature economies. These markets are fertile ground for creativity and innovation.

However, in South Africa, competitiveness is being eroded by poor productivity and a labour market dominated by unions that have strong political influence.

Also, South Africa's exports are largely minerals and other commodities, now 62 percent of total exports, up from 46 percent in 2002. Profit margins on commodities are at the bottom end of the "food chain", whereas beneficiation, and gaining branded status, immediately raises profit margins.

"The South African/African business culture remains digging things out of the ground. We desperately need to grow our own branded offerings," Sampson believes.

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